⚡️Tata wants to manufacture iPhones, Elon Musk sets a Guinness Record

🤩 The Good

Tata Group is close to taking over an iPhone plant near Bengaluru. The conglomerate is looking to purchase the plant from Taiwan’s Wistron Corp. by the end of March, according to sources. The acquisition could value Wistron’s Indian iPhone manufacturing operation at $600M+. If the deal goes through, Tata will oversee the main manufacturing operation with Wistron’s support. Wistron, Foxconn, and Pegatron, all Taiwanese, are the largest iPhone contract manufacturers in India.

Zerodha’s net profit grew 87% to ₹2,094 crore in FY22 from ₹1,122 in FY21. The bootstrapped fintech startup, which runs India’s largest stockbroking platform, also saw an 82% jump in operating revenue to ₹4,963 crore. Unlike competitors like Upstox and Groww, Zerodha does not spend on advertising and marketing. The company has benefited from the pandemic, digital signatures, e-KYC, and UPI since these factors have driven more young Indians to public markets.

Amul’s managing director R. S. Sodhi steps down after over 40 years at the company. Refuting rumours about him being sacked and his office being sealed, Sodhi clarified that he was quitting after his term extension ended. Sodhi joined the company as a senior sales officer in 1982 and took over as the managing director 2010. The company’s turnover grew from ₹9,744.27 crore in FY11 to ₹46,481 in FY22 during his tenure.

👿 The Bad

Byju’s is seeking more time from lenders to renegotiate a $1.2B loan agreement. According to sources, Byju’s is in breach of covenants in the agreement and wants more time to renegotiate with creditors. One of these covenants was about disclosing financials for FY22 by September 2022, which the company failed to do. As losses mount, some creditors want a quicker repayment of the loan from the company’s ~$850M cash reserves, which could worsen the company’s financial troubles.

🤔 The Wait-and-Watch

Reliance is preparing for a battle with Coca-Cola and Pepsi. Reliance Retail entered the FMCG space by acquiring the once iconic Campa Cola in August 2022 for ~₹22 crore. This foray into the ₹68,000 crore Indian soft drinks market puts Reliance in direct competition with Coca-Cola and Pepsi, the American giants who’ve dominated the sector. The company is also luring non-cola drinkers by acquiring a 50% stake in 100-year-old Sosyo Hajoori Beverages Company which makes carbonated drinks under Sosyo, Lemee, and other brands.

Tata Consultancy Services reduces headcount for the first time in 10 quarters. As a part of the Q3 FY23 earnings announced yesterday, TCS also reported that it had reduced headcount by 2,197. The company had 6,16,171 employees before the reduction. CEO Rajesh Gopinathan said that the drop occurred because TCS had doubled its trainee intake during an increased demand in 2021. Experts believe that this may be the end of the five-year hypergrowth phase for Indian IT firms.

Amid controversy about Mamaearth’s valuation, CEO Ghazal Alagh disclaims the publicly discussed $3B number. Mamaearth’s IPO prospectus and a supposed $3B valuation drew immense scrutiny last week. This led the startup’s CEO to clarify that the prospectus does not mention a valuation and that a figure will be decided after discussions with investors. That’s true: the $3B number came from a June 2022 report and hasn’t ever been confirmed by Mamaearth. Whatever the valuation proves to be, it will have to be backed by profitability and market growth.

🌎 International

Microsoft is planning to invest $10B in OpenAI, the AI firm behind ChatGPT. According to sources, the deal will value OpenAI at $29B even though the company is yet to figure out its business model. The transaction might be fairly complicated, with Microsoft potentially getting 75% of OpenAI’s profits till it recovers its investment, after which its stake will drop to 49%.

Crypto exchange Coinbase will lay off ~950 employees. In more signs that the crypto industry is slowing down, Coinbase said it will eliminate about 20% of its nearly 4,700 workforce. The exchange also plans to reduce operating expenses by 25%.

Elon Musk sets a Guinness World Record for the largest loss of personal fortune in history. The former richest person in the world lost ~$182B since November 2021, surpassing Masayoshi Son’s previous record of $58.6B set in 2000. Most of Musk’s net worth is tied to Tesla’s stock, which dropped ~70% in 2022.

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Catch you tomorrow! 👋